how to raise venture capital

[imsickofwebpro]

Hi All,

I want to know the easiest and fastest way to raise capital for a new business.

1. Who do I contact
2. Is there a site I can post to online to get noticed
3. How do i get venture capitalists to contact me
4. What is a good interest rate to pay out
5. What to look out for
6. Pros and cons

I've researched this before and made a business plan, but never got around to looking into government agencies. But really, i want the Big Investors, like the facebook guy got.

Any input or past experiences would be appreciated.

[cw1865]

Remember, venture capitalists are seeking a massive return. Typically the only reason why you're looking for venture capital is because you can't borrow the money from a bank. At present you can get an unsecured line of credit for 10-10.5% and you can get much lower rates for secured loans, ie. home equity, car loans, etc. So, if you're paying a bank 10-10.5% you can imagine what venture capitalists are looking for (remember that they can buy T-Bills, and incur no risk).

Many of the agreements are also lopsided in favor of the venture capitalist.

Nevertheless, the best way to attract venture capital is to remove as much 'risk' from the equation (legitimately of course).

For instance, if you are operating a company as a start-up with, quite literally, zero sales, this would be considered riskier than a company that already has proven it can sell SOMETHING.

At the end of the day, its still going to boil down to selling yourself, you're going to have to convince the investor that you'll get big at the gym after receiving his steroid injection.

[incrediblehelp]

I agree CW. Having a legitimately running business, allbeit on smaller scale, is the way to get good seed money.

[kgun]

Positive increasing free cash flow on existing business.

No, "religious" meetings with great prospects, please.

[imsickofwebpro]

Thanks for the info guys. Good advice!